CORPUS CHRISTI, Texas,
April 26, 2017 /PRNewswire/
-- TOR Minerals International, Inc. (Nasdaq: TORM), producer
of high performance specialty minerals, today announced its
financial results for the first quarter ended March 31, 2017. Highlights for the first quarter
of 2017 as compared to the first quarter of 2016 include:
- 1Q17 revenue increased 12 percent to $10.7 million
- 1Q17 net loss of ($132,000),
versus 1Q16 net income of $244,000.
- 1Q17 diluted net loss per share of ($0.04), versus 1Q16 net income per share of
$0.08
|
Revenue by Product
Group (in 000's)
|
|
1Q17
|
|
1Q16
|
|
% Change
2017 vs. 2016
|
|
Specialty
Aluminas
|
|
$
|
5,743
|
|
$
|
4,834
|
|
19%
|
|
Barium Sulfate and
Other Products
|
|
2,350
|
|
2,329
|
|
1%
|
|
TiO2
Pigments
|
|
2,603
|
|
2,409
|
|
8%
|
|
Total
|
|
$
|
10,696
|
|
$
|
9,572
|
|
12%
|
During the first quarter ended March 31,
2017, revenue increased 12 percent to $10.7 million, versus $9.6
million reported during the same period of 2016. The
increase in revenue was primarily due to continued growth in
specialty alumina sales, as well as incremental growth in TiO2
pigment sales. The increase in specialty alumina sales was
due to strong growth to both existing and new customers in the U.S.
and Europe, as well as increased
volumes from a significant U.S. customer. The increase in TiO2
pigment sales was primarily due to significant growth in volume in
Europe and Asia, partially offset by a decrease in U.S.
sales and a mid-single-digit decrease in average selling price.
During the first quarter of 2017, gross margin decreased 3.3
percentage points to 10.5 percent of sales. The decrease in gross
margin was primarily related to a temporary increase in maintenance
activities and costs at the U.S. and Netherlands-based manufacturing facilities,
which negatively affected utilization and efficiencies of these
operations. During the first quarter, SG&A expenses were
$1.2 million, versus $0.8 million during the first quarter of 2016.
SG&A costs during the first quarter of 2016 benefited by
$273,000, from the reversal of a bad
debt expense, which had previously been deemed uncollectable.
Excluding this from the comparison, SG&A costs increased seven
percent year over year, which was primarily due to increases in
sales commissions and salaries and benefits. During the first
quarter of 2017, the net loss was ($132,000), or ($0.04) per diluted share, as compared to net
income of $244,000, or $0.08 per diluted share, during the prior
year.
"We had mixed results during the first quarter with strong
revenue growth offset by a temporary decrease in gross margin
performance. While extended-maintenance affected our margin
performance during the first quarter, we expect the level of
maintenance activity will return to normal during the balance of
the year," commented Dr. Olaf
Karasch, Chief Executive Officer. "First quarter
marked a clear turning point in the health of our TiO2 business
with the first positive year-over-year comparison in more than
three years. We have recently implemented price increases for TiO2
pigments in certain geographies and have added distribution
capabilities. As we enter the seasonally strong period for
TiO2, the segment is well-positioned to deliver profitable growth
for the year. We also expect profitable growth from our
specialty alumina business this year as efforts to diversify the
revenue mix are gaining traction with new and existing customers in
new application areas and new geographies. Overall we remain
confident that we are well-positioned to deliver double-digit
revenue growth during 2017, as well as further improve
profitability and returns for our shareholders."
TOR Minerals will host a conference call at 5:00 p.m. Eastern, 4:00
p.m. Central Time, on April 26,
2017, to further discuss first quarter results. The call
will be simultaneously webcast, and can be accessed via the News
section on the Company's website, www.torminerals.com.
Investors and interested parties may participate in the call by
dialing 877-407-8033 and referring to conference ID # 13659260.
Headquartered in Corpus Christi,
Texas, TOR Minerals International is a global manufacturer
and marketer of specialty mineral and pigment products for high
performance applications with manufacturing and regional offices
located in the United States,
Netherlands and Malaysia.
This statement provides forward-looking information as that
term is defined in the Private Securities Litigation Reform Act of
1995, and, therefore, is subject to certain risks and
uncertainties. There can be no assurance that the actual results,
business conditions, business developments, losses and
contingencies and local and foreign factors will not differ
materially from those suggested in the forward-looking statements
as a result of various factors, including market conditions,
general economic conditions, including the present slowdown in U.S.
construction and the risks of a general business slow down or
recession, the increasing cost of energy, raw materials and labor,
competition, the receptivity of the markets for our anticipated new
products, advances in technology, changes in foreign currency
rates, freight price increase, commodity price increases, delays in
delivery of required equipment and other factors.
Contact for Further Information:
Dave Mossberg
Three Part Advisors, LLC
817-310-0051
|
TOR Minerals
International, Inc. and Subsidiaries
|
|
Condensed
Consolidated Statements of Operations
|
|
(Unaudited)
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended March 31,
|
|
|
2017
|
|
2016
|
|
NET
SALES
|
$
|
10,696
|
$
|
9,572
|
|
Cost of
sales
|
|
9,569
|
|
8,247
|
|
GROSS
MARGIN
|
|
1,127
|
|
1,325
|
|
Technical services,
research and development
|
|
43
|
|
38
|
|
Selling, general and
administrative expenses
|
|
1,193
|
|
842
|
|
Gain on disposal of
assets
|
|
-
|
|
(1)
|
|
OPERATING (LOSS)
INCOME
|
|
(109)
|
|
446
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
|
|
Interest expense,
net
|
|
(29)
|
|
(50)
|
|
Loss on foreign
currency exchange rate
|
|
(33)
|
|
(89)
|
|
Other, net
|
|
1
|
|
12
|
|
Total Other
Expense
|
|
(61)
|
|
(127)
|
|
(LOSS) INCOME
BEFORE INCOME TAX
|
|
(170)
|
|
319
|
|
Income tax (benefit)
expense
|
|
(38)
|
|
75
|
|
NET (LOSS)
INCOME
|
$
|
(132)
|
$
|
244
|
|
|
|
|
|
|
(Loss) earnings
per common share:
|
|
|
|
|
|
Basic
|
$
|
(0.04)
|
$
|
0.08
|
|
Diluted
|
$
|
(0.04)
|
$
|
0.08
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
Basic
|
|
3,542
|
|
3,014
|
|
Diluted
|
|
3,542
|
|
3,187
|
|
TOR Minerals
International, Inc. and Subsidiaries
|
|
Condensed
Consolidated Balance Sheets
|
|
(Unaudited)
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
March 31,
2017
|
|
December 31,
2016
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
3,725
|
$
|
3,716
|
|
Trade accounts
receivable, net
|
|
5,266
|
|
3,557
|
|
Inventories,
net
|
|
9,361
|
|
11,776
|
|
Other current
assets
|
|
1,062
|
|
742
|
|
Total current
assets
|
|
19,414
|
|
19,791
|
|
PROPERTY, PLANT AND
EQUIPMENT, net
|
|
16,388
|
|
15,907
|
|
DEFERRED TAX ASSET,
foreign
|
|
-
|
|
27
|
|
OTHER
ASSETS
|
|
4
|
|
4
|
|
Total
Assets
|
$
|
35,806
|
$
|
35,729
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Accounts
payable
|
$
|
1,694
|
$
|
2,122
|
|
Accrued
expenses
|
|
1,946
|
|
1,136
|
|
Export credit
refinancing facility
|
|
-
|
|
206
|
|
Current maturities of
long-term debt – financial institutions
|
|
1,102
|
|
1,142
|
|
Total current
liabilities
|
|
4,742
|
|
4,606
|
|
LONG-TERM DEBT -
FINANCIAL INSTITUTIONS
|
|
2,608
|
|
2,725
|
|
DEFERRED TAX
LIABILITY, domestic
|
|
75
|
|
127
|
|
DEFERRED TAX
LIABILITY, foreign
|
|
10
|
|
-
|
|
Total
liabilities
|
|
7,435
|
|
7,458
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Common stock $1.25
par value: authorized, 6,000 shares;
3,542 shares issued and outstanding at March 31, 2017
and December 31, 2016
|
|
4,426
|
|
4,426
|
|
Additional paid-in
capital
|
|
30,590
|
|
30,544
|
|
Accumulated
deficit
|
|
(4,953)
|
|
(4,821)
|
|
Accumulated other
comprehensive loss
|
|
(1,692)
|
|
(1,878)
|
|
Total shareholders'
equity
|
|
28,371
|
|
28,271
|
|
Total Liabilities
and Shareholders' Equity
|
$
|
35,806
|
$
|
35,729
|
|
|
|
|
|
|
TOR Minerals
International, Inc. and Subsidiaries
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2017
|
|
2016
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
Net (loss)
income
|
$
|
(132)
|
$
|
244
|
|
Adjustments to
reconcile net (loss) income to net cash
provided by operating activities:
|
|
|
|
|
|
Depreciation
|
|
647
|
|
633
|
|
Gain on disposal of
assets
|
|
-
|
|
(1)
|
|
Stock-based
compensation
|
|
46
|
|
49
|
|
Deferred income tax
benefit
|
|
(16)
|
|
(5)
|
|
Recovery of bad
debts
|
|
-
|
|
(273)
|
|
Changes in working
capital:
|
|
|
|
|
|
Trade accounts
receivables
|
|
(1,684)
|
|
(426)
|
|
Inventories
|
|
2,487
|
|
1,829
|
|
Other current
assets
|
|
(313)
|
|
(26)
|
|
Accounts payable and
accrued expenses
|
|
275
|
|
(127)
|
|
Net cash provided by
operating activities
|
|
1,310
|
|
1,897
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
Additions to property,
plant and equipment
|
|
(895)
|
|
(228)
|
|
Net cash used in
investing activities
|
|
(895)
|
|
(228)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from lines of
credit
|
|
-
|
|
4
|
|
Payments on lines of
credit
|
|
-
|
|
(202)
|
|
Proceeds from export
credit refinancing facility
|
|
-
|
|
523
|
|
Payments on export
credit refinancing facility
|
|
(209)
|
|
(828)
|
|
Payments on long-term
bank debt
|
|
(215)
|
|
(313)
|
|
Net cash used in
financing activities
|
|
(424)
|
|
(816)
|
|
Effect of foreign
currency exchange rate fluctuations on cash and cash
equivalents
|
|
18
|
|
38
|
|
Net increase in cash
and cash equivalents
|
|
9
|
|
891
|
|
Cash and cash
equivalents at beginning of period
|
|
3,716
|
|
813
|
|
Cash and cash
equivalents at end of period
|
$
|
3,725
|
$
|
1,704
|
|
|
|
|
|
|
Supplemental cash
flow disclosures:
|
|
|
|
|
|
Interest
paid
|
$
|
30
|
$
|
28
|
|
Income taxes
paid
|
$
|
105
|
$
|
9
|
|
Non-cash financing
activities:
|
|
|
|
|
|
Capital expenditures
financed through accounts payable and accrued expenses
|
$
|
72
|
$
|
260
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tor-minerals-international-inc-reports-first-quarter-financial-results-300445819.html
SOURCE TOR Minerals International, Inc.
